
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1234B]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
                 Subchapter P--Capital Gains and Losses
 
     PART IV--SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES
 
Sec. 1234B. Gains or losses from securities futures contracts


(a) Treatment of gain or loss

                           (1) In general

        Gain or loss attributable to the sale or exchange of a 
    securities futures contract shall be considered gain or loss from 
    the sale or exchange of property which has the same character as the 
    property to which the contract relates has in the hands of the 
    taxpayer (or would have in the hands of the taxpayer if acquired by 
    the taxpayer).

                  (2) Nonapplication of subsection

        This subsection shall not apply to--
            (A) a contract which constitutes property described in 
        paragraph (1) or (7) of section 1221(a), and
            (B) any income derived in connection with a contract which, 
        without regard to this subsection, is treated as other than gain 
        from the sale or exchange of a capital asset.

(b) Short-term gains and losses

    Except as provided in the regulations under section 1092(b) or this 
section, if gain or loss on the sale or exchange of a securities futures 
contract to sell property is considered as gain or loss from the sale or 
exchange of a capital asset, such gain or loss shall be treated as 
short-term capital gain or loss.

(c) Securities futures contract

    For purposes of this section, the term ``securities futures 
contract'' means any security future (as defined in section 3(a)(55)(A) 
of the Securities Exchange Act of 1934, as in effect on the date of the 
enactment of this section).

(d) Contracts not treated as commodity futures contracts

    For purposes of this title, a securities futures contract shall not 
be treated as a commodity futures contract.

(e) Regulations

    The Secretary shall prescribe such regulations as may be appropriate 
to provide for the proper treatment of securities futures contracts 
under this title.

(Added Pub. L. 106-554, Sec. 1(a)(7) [title IV, Sec. 401(a)], Dec. 21, 
2000, 114 Stat. 2763, 2763A-648.)

                       References in Text

    Section 3(a)(55)(A) of the Securities Exchange Act of 1934, referred 
to in subsec. (c), is classified to section 78c(a)(55)(A) of Title 15, 
Commerce and Trade.
    The date of the enactment of this section, referred to in subsec. 
(c), is the date of enactment of Pub. L. 106-554, which was approved 
Dec. 21, 2000.

                          Codification

    Pub. L. 106-554, Sec. 1(a)(7) [title IV, Sec. 401(a)], which 
directed amendment of subpart IV of subchapter P of chapter 1 by adding 
this section after section 1234A, was executed by adding this section 
after 1234A of this part which is part IV of subchapter P of chapter 1, 
to reflect the probable intent of Congress.

                  Section Referred to in Other Sections

    This section is referred to in sections 1032, 1092, 1223, 1233, 
1234A, 1275 of this title.
